| Corporate entertainment saw a downturn during the recession, but is now ready to offer bespoke events to meet a market demanding better value for money, discovers Cathy Wallace.
In a recessionary 2009, the last thing many big brands wanted was to be seen splashing unnecessary cash taking clients or journalists out on lavish jollies.
The corporate hospitality market took a drubbing, as banks, businesses and individuals concentrated on tightening the purse strings, rather than booking their regular box at Lord's. Many predict this year will be significantly kinder than the last...plus the international spectacle that is the football World Cup looms. But brands may not necessarily be rushing to book tickets to South Africa.
Those in the know say the type of corporate hospitality firms are asking for has shifted irrevocably.
'We will not see a return to the pre-recession days,' asserts Justine Clement, managing director at experiential firm Unmissable. 'Corporate hospitality has shifted from the big glitz, glamour and over-indulgent events. Many companies will be very keen to keep their activity under the radar.'
'We are seeing companies ask for less formal and slightly lower cost packages,' says Walker. 'That is not just the economic climate, it is to do with changing social aspects and the changing demographic of people in middle and high management. A younger generation is coming through, not necessarily wanting the formal sit-down three-course meal.'
Of course, the sit-down meal is still an option for those of the old school, but the demand is moving from passively watching an event from the comfort of the lunch table, to being included in the action.
THE YEAR AHEAD
The obvious event looming on the 2010 calendar is the football World Cup in South Africa. While some brands will still be shelling out for plane tickets for their most important clients, most are likely to go down the road of private screenings, hiring hotels or restaurants for match days including a screening and a meal, or World Cup-themed events.
Despite predictions that the economic climate will pick up in 2010, brands will still be careful about how they are seen to spend.
'For clients on the receiving end of hospitality, there are also changes,' adds Unmissable's Clement. 'Many are turning down hospitality or reducing the amount of events they attend, as they can't be seen to be going out partying. They are having to validate which events they attend.'
If brands want clients to give up their personal time to attend events, they will need to make it a very appealing package: 'In many cases, people will only give up their personal time if a relationship already exists.'
To get around the problem, Clement advises tailoring an event to appeal to the senior management that brands would like to attract.
'We will definitely see more celebrities and sporting heroes involved in events to give them a more personalised feel,' adds Clement.
Other types of events likely to be popular in 2010 include interactive packages, where clients can be coached in activities such as golf or driving by a professional or sporting hero. Events in which the client can bring a partner or even their whole family will also succeed, predicts Clement.
Beyond 2010
Looking ahead, the huge event on the horizon for the corporate hospitality world is London 2012. 'Things will start stepping up towards the end of 2010 and into 2011 as the scramble for business begins,' predicts David Quainton, deputy editor of Event magazine. 'Big brands will already be planning their 2012 strategies.'
Unmissable's Clement says private members clubs will prove popular and predicts the most successful will be those that are renowned for their discretion.
At the other end of the scale, the trend for value for money is also set to continue. Sporting dinners are proving popular, citing examples in 2009 of up to 1,000 people attending dinners that cost around £150 a head, rather than £700.
Finally, as the sectors that have traditionally flung money at corporate hospitality, such as banking, continue to watch how they are perceived, other brands will be able to infiltrate the premium package market.
CORPORATE HOSPITALITY IN 2010
What's hot
- Football World Cup (June)
- Ryder Cup (October)
- England vs Ireland in the Six Nations (27 February)
- Players' lounge at Twickenham
- Men's quarter, semi and finals at Wimbledon
- Family fun days
- Coaching days with a pro golfer
- Value for money
- Buffet lunches and 'chef's tables'
- £150 a head
What's not
- Splashing the cash
- £1,000 a head
- Horse racing
- Motor sports
- Sit-down three-course meals
- ENDS - |
